Microsoft’s Windows 10 is flat, its phone business is dying but its cloud portfolio is soaring

But the protagonist of this enormous jump wasn’t Windows 10, its hardware line, or the Xbox product portfolio, but rather its cloud products. The “intelligent cloud” sector jumped an impressive 8.3%, beating investor estimates in the process, and pushing the company to its highest stock price this decade.

Leading the cloud charge is its Azure platform. The service grew 116% (up 121% in constant currency) in terms of commercial revenue with “compute usage more than doubling year-over-year”.

While its intelligent cloud services saw a jump, its cloud-based Office 365 platform also saw a 51% spike in commercial revenue in the quarter. Search is also up around 9% thanks to “increased revenue per search and search volume”.

Not all sunshine and rainbows

Not everything is awesome for Microsoft though.

Its Phone business is down a 72%, while Windows OEM and Windows commercial products were both fairly flat.

Finally, as mentioned earlier, Microsoft’s Xbox platform is down a meagre 5%, citing a slow-down of Xbox console purchases, even though Microsoft has outsold Sony’s PlayStation 4 in the past three months.

Author | Andy Walker: Editor

Camper by day, run-and-gunner by night, Andy prefers his toast like his coffee -- dark and crunchy. Specialising in spotting the next big Instagram cat star, Andy also dabbles in smartphone, gadget and game reviews over on Gearburn. More